BMR Portfolio
Gold Bullion Development (GBB, TSX-V)
Gold Bullion was up half a penny on the week to 50 cents, trading in a range of 47.5 to 57 cents…the company issued an exploration update last Tuesday which was very bullish in its tone…drilling at Granada is intersecting multiple zones of altered feldspar porphyry (favorable for gold mineralization) in the Phase 1 east-northeast discovery area of the LONG Bars Zone…these structures, in fact, are being intersected in all directions (north, south, east and west) of Phase 1 discovery hole GR-10-17 which is extremely encouraging…about 4,000 metres of drilling (17 holes) has been completed in this promising area which is not part of the 2.4 to 2.6 million ounce estimate of potential resources (non-compliant) contained within the Preliminary Block Model…GENIVAR appears to be drilling twice as deep in the east-northeast area as they were in Phase 1 which is very interesting…given how efficient and effective GENIVAR has proven to be in drilling Granada, they certainly wouldn’t be wasting time and money with these deeper holes if these holes weren’t yielding good visual results…it’s possible the widespread lower grade mineralization at and near the surface is just the “tip of the iceberg” and something even more significant is at depth (for example, 300 vertical metres) which is still amenable to open-pit mining…Osisko’s Canadian Malartic goes down 320 metres…Gold Bullion also reported it has identified a second LONG Bars Zone 1800 metres east of GR-10-17…this area, which has undergone some extensive historical work including trenching and limited diamond drilling, features numerous north-dipping quartz vein or stringer zones and feldspar porphyry sills and dykes along a 1 kilometre shear zone…several northeasterly faults cross the shear zone and are considered prime targets for economic gold concentrations…some high grade showings were reported from historical work including up to 7 ounces per tonne (200+ g/t Au) from the Bert Vein, information BMR obtained from a publicly available 1994 report on the Granada Eastern Extension that was filed with the Quebec Ministry of Mines…LONG Bars Zone 2 has very similar geological characteristics to the original LONG Bars Zone Gold Bullion is currently drilling…a fascinating geological story continues to unfold at Granada…
Seafield Resources (SFF, TSX-V)
BMR interviewed Seafield President and CEO Tony Roodenburg this past week…Roodenburg presented a strong case for Seafield proving up a series of deposits at its Quinchia Project in Colombia that could total anywhere from 3 to 5 million ounces…the drill bit and fundamentals will be the main drivers behind Seafield over the coming months…drilling started 3 weeks ago at Miraflores where the company is confident it will increase the 43-101 inferred resource by at least 25% to 1 million ounces…drilling at Dos Quebradas likely won’t begin until about the end of August while no timeline for drilling has yet been established for Chuscal, another very promising target…the same individuals (Ian Park and Stewart Redwood) who assembled Medoro’s (MRS, TSX-V) land package, which contains the 9.5 million ounce Marmato Deposit, are running Seafield’s Colombian operations which cover 68 square kilometres in the highly prospective Quinchia District…Seafield closed Friday at 16.5 cents, giving it a market cap of only $15.5 million…Roodenburg feels the company has an excellent chance to define 2 million ounces at Quinchia at year-end which would significantly boost Seafield’s current market cap…
Sidon International Resources (SD, TSX-V)
Sidon enjoyed a breakthrough week as it finally received approval from the CDNX on its spring financing at 5 cents and letter of intent to acquire the Morogoro East Gold Property in Tanzania…BMR introduced Sidon to its readers and added the company to its portfolio in March when the stock was sitting at just a nickel…while Sidon may need a bit of time to digest its recent significant gains and unwind a somewhat overbought technical condition, we are very bullish on this situation for the remainder of the year as Morogoro appears to have Handeni-style potential…Canaco (CAN, TSX-V) has risen dramatically recently on stellar results from its Handeni Gold Project approximately 60 miles to the north of Morogoro East…Sidon traded huge volumes this past week and closed Friday at 10 cents, a 66% gain from its 6-cent close the week before…
Richfield Ventures (RVC, TSX-V)
Richfield has strengthened considerably recently and is up 50% since hitting a low of 90 cents June 28…the company is in the midst of a 25,000 metre drill program at its Blackwater Gold Project in central British Columbia which has world class potential…drilling started in April but the stock went into a sharp decline due to average early results combined with a very slow pace of drilling…a second rig is expected to be in action at Blackwater shortly which will help immensely…we continue to be very bullish on Richfield which is certainly starting to regain momentum…however, we caution it could be late summer or early fall (after more drill results) before the market gets really excited with this story…Richfield closed Friday at $1.35 (right at its 200-day moving average where there is resistance) for a 15-cent weekly gain…
North Arrow Minerals (NAR, TSX-V)
September can’t come quickly enough for North Arrow…the company announced Friday it will commence a 1,500 metre drill program at its Lac de Gras diamond property in the Northwest Territories by early September…the planning that has gone into this important upcoming drill program has been impressive indeed, and we’re very confident North Arrow has a strong probability of hitting some kimberlite pipes…the key of course will be whether they are economic…the ratio, however, of kimberlite pipes to economic pipes at Lac de Gras is the highest in the world…if there are two people on this earth who are capable of making a major new diamond discovery at Lac de Gras, they are Gren Thomas and Dr. Chris Jennings who have teamed up again with North Arrow after discovering the Diavik diamond deposit in the early 1990’s…Diavik trends right through the centre of North Arrow’s property…North Arrow also released encouraging drill results last week regarding its Beaverdam Lithium Project in North Carolina…it’ll be interesting to see the next steps North Arrow takes with regard to Beaverdam…North Arrow closed Friday at 17 cents, unchanged on the week…
Kent Exploration (KEX, TSX-V)
With an improved balance sheet thanks to a major financing (the final tranche of which is still pending), Kent has posted the reclamation bond that was necessary in order to commence production at its Flagstaff Barite Property in northeastern Washington State…final approval from the Bureau of Land Managment should come in the near future…Kent has gone through some rough times the past couple of months, triggered by Australian politics and a very foolish proposed “super tax” on producing mining companies which has since been watered down by the new Australian Prime Minister…Gnaweeda, one of Kent’s three flagship properties, is located in Western Australia…with some money now its bank account, potential cash flow that could be generated from the barite property, and a drill program expected to start in the near future at its Alexander River Gold Property in New Zealand, our outlook for Kent over the next few months has improved considerably…the stock finished the week at 11 cents, down 1.5 cents from the previous week…
Colombian Mines Corporation (CMJ, TSX-V)
CMJ’s 100-day SMA is in decline but the stock has found support at its rising 300-day SMA which is just above 60 cents…CMJ closed Friday at 68 cents, down 4 pennies on the week…the company released new drill results from its Yarumalito Gold-Copper Property last Monday…the best intercept was 141 metres grading 0.77 g/t Au…CMJ is considering expanding its drill program at Yarumalito based on encouraging results to date…given the fact CMJ has a very large land package in Colombia, and is a well-run company with extensive experience in that country, we remain bullish on the medium to long-term prospects for CMJ…
Greencastle Resources (VGN, TSX-V)
No less than 35% of the buying in Greencastle since June 17 has come from President and CEO Tony Roodenburg who continues to add to his personal holdings at favorable prices…on a book value basis, Greencastle has never been cheaper in its dozen or so years on the market…the stock closed the week at 12.5 cents, up half a penny, and continues to trade at cash value…history has shown that Greencastle is always a terrific buy when it’s trading at cash value and no one knows that better than Roodenburg…sooner or later an event will trigger renewed interest in the stock and a significant move to the upside…investors should only jump into Greencastle, in our view, if they have a 6 to 12-month time horizon…
